This is a DAILY chart. Each candle represents one day of price activity.
This chart is mostly for me. I guess I could have taken a screen shot instead of posting it but I thought someone else may enjoy it. Comment if you wish. You probably won't hurt my feelings :)
In times of turmoil (thanks CNBC) I like to pay attention to shorter term signals because everything changes so fast. Up one day, down the next. Can I see anything that will give me a clue about what is to come?
I know that comparing the current candle to the last candle often gives me clues about the strength of a move. I also put a degree of confidence in the body of the candle itself as well as the entire candle to include the top an bottom tails.
I choose not to blindly buy a market that is down 10% because what if it goes down another 10%. I would rather try to see if I can "read the candles" from day to day to get an idea what is happening. Worst case scenario is I try to follow the market and it goes against me. I am used to that. I know how to get out of a position that isn't working. I can get back in or I can change directions with the market. There is always another trade to make.
Trading is trial and error. I try and it works or it doesn't. I have methods I use to try to stack the deck in my favor. But at the end of the day I decide to "try" a trade (trial) and I will ride it till it stops working. If it fails right away and I lose money, that was an "error". Trial and Error.
Again, these are more personal notes that anything else. If they help you that is awesome. If not, sorry you took the time to read all this...
Looks to me like the big, smart money is dumping to sucker dumb money into shorting. Then they'll have a longer run to start buying again while continuing to buy from those still suckering for the short side. Could be wrong, but if the price closes above that resistance the price met, I would advise to go long. The clincher for me is the sudden increase in volume on the down trend that suddenly turns green on wider daily range in the body. This happens with significant wicks penetrating the bull resistance. The lower bullish support/bearish resistance line does NOT get penetrated by the wicks. In my book, together with the volume, this is telling.